United States v. Zar (Derek), No. 13-1111 (10th Cir. 2015)
Annotate this CaseDefendants Michael Jacoby, Derek Zar, and Susanne Zar appealed convictions and sentences arising from their participation in a mortgage fraud scheme. From 2005 to 2006, real estate agent Michael Jacoby devised and executed a mortgage fraud scheme involving the purchase of 18 residential properties in Colorado. Jacoby recruited willing sellers to sell homes at inflated prices, willing buyers to purchase the homes by obtaining mortgage loans based on falsified loan applications, and willing investors to supply short-term loans to cover the buyers' down payments. Jacoby acted as realtor for each transaction, while Derek Zar and his mother, Susanne Zar, were buyers. Derek Zar purchased seven of the properties with fraudulent loan applications and participated in the sales of four other properties either by arranging for the sale of or selling three properties to Susanne Zar and one to another buyer. Susanne Zar purchased six of the properties with fraudulent loan applications and participated in the sales of four other properties by preparing false documents to support Derek Zar's purchases. For some transactions, Jacoby arranged for sellers to "donate" part of the sales proceeds to grant programs without disclosing to lenders that the "donation" would be funneled back to buyers to repay short-term loans from investors covering the buyers' down payments. In other transactions, Jacoby arranged for back-to-back sales involving the same property. The government tried the defendants together, but each defendant separately appealed and filed separate briefs. Finding no reversible trial or sentencing errors as to any defendant, the Tenth Circuit affirmed.
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